NSW Fair Trading crack down on scalpers with new laws, now illegal to charge more than original cost

NSW Fair Trading have just announced that as of today (June 1), it will be against the law for ticket resellers to charge more than the original ticket cost.

Transaction costs will also be capped at 10%.

Maximum penalties of $11,000 for individuals or $22,000 for businesses now apply for all offences. Fair Trading officers are also able to issue a penalty infringement notice and a $550 fine, including one-off breaches.

The NSW Fair Trading website states that: “The new laws apply to all tickets to NSW events that are first sold or supplied by the authorised seller from 1 June 2018, and have a resale restriction.

“A resale restriction is a term or condition of a ticket that limits the circumstances in which the ticket may be resold, or prohibits resale of the ticket.”

Terms and conditions on tickets often prohibit resale without the written consent of the ticketing agency, event organiser or venue.

The new laws will provide protection for customers who purchase resale tickets, as they will prevent event organisers from cancelling tickets which have been resold in accordance with the new laws.

Resellers such as Viagogo will now also be required to show the original cost of the ticket, as well as the seating details.

In NSW, the resale of tickets for sporting and entertainment events is legal; reselling tickets outside venues such as Sydney Olympic Park or Sydney Cricket Ground is prohibited.

“One of the aims of the ticket scalping laws is to provide for a legitimate resale market,” the website reads. “Consumers who purchase an event ticket and can no longer attend should be able to sell that ticket to someone else and recover their costs in the process.”

The laws apply no matter how many times a ticket is resold.

If a ticketholder finds that an event’s terms and conditions prevent the resale of their ticket, they are now able to contact the Department of Fair Trading. They will then assess the T&Cs and contact the event organisers, and make a decision on what action should be taken.

The laws will also prevent the resale of complimentary tickets, such as those won in competitions ie. the ticket, if not used by the winner, must be given away for free.

The laws only apply to events that are held at a venue inside NSW.